The Monetary Board, in its Resolution No. 151 dated February 9, 1990 approved the following amendments to the provisions of Books I - III of the Manual of Regulations for Banks and Other Financial Intermediaries governing the rediscounting of eligible paper under the rediscount window:

SECTION 1. Subsection 1271.1 (Book I), 2271.1 (Book II) and 3271.1 (Book III) of the Manual of Regulations are hereby amended to read as follows:

œLoan, Value, Rediscount, and Lending Rates - The loan value and rediscount rate for the rediscount facility of the Central Bank shall be as follows:

Eligible Papers	Loan Value (In %)	Rediscount Rate (In % p.a.)
Agricultural Production,
Cottage and Small
Industries Credits,
General Purpose
Working Capital
Financing and Other
Short-Term Credits	80	13.0

œThe lending rates that the banks may charge on their rediscounted papers shall not be subject to any ceiling. However, the spreads made by banks shall be closely monitored periodically by the Central Bank to ensure that these are consistent with the prevailing market rate. 

Provisions of existing Circulars inconsistent with the above are deemed superseded.

This Circular shall take effect immediately.

Adopted: 19 Feb. 1990

(SGD.) JOSE B. FERNANDEZ, JR.
Governor